NasdaqGS:WMGI

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Executive Summary

Wright Medical Group N.V., a medical device company, designs, manufactures, markets, and sells upper and lower extremities, and biologics products in the United States, Europe, the Middle East, Africa, Canada, Asia, Australia, and Latin America.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Wright Medical Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WMGI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

WMGI

-7.8%

US Medical Equipment

3.8%

US Market


1 Year Return

-6.6%

WMGI

10.9%

US Medical Equipment

9.7%

US Market

Return vs Industry: WMGI underperformed the US Medical Equipment industry which returned 10.9% over the past year.

Return vs Market: WMGI underperformed the US Market which returned 9.7% over the past year.


Shareholder returns

WMGIIndustryMarket
7 Day0.8%-7.8%3.8%
30 Day0.1%2.7%11.4%
90 Day-0.4%7.4%6.8%
1 Year-6.6%-6.6%11.8%10.9%12.1%9.7%
3 Year13.7%13.7%58.9%54.6%36.2%27.2%
5 Yearn/a106.6%85.3%63.7%45.4%

Price Volatility Vs. Market

How volatile is Wright Medical Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wright Medical Group undervalued compared to its fair value and its price relative to the market?

24.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WMGI ($29.79) is trading below our estimate of fair value ($39.68)

Significantly Below Fair Value: WMGI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WMGI is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: WMGI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WMGI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WMGI is overvalued based on its PB Ratio (4.4x) compared to the US Medical Equipment industry average (3.9x).


Next Steps

Future Growth

How is Wright Medical Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

101.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WMGI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: WMGI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WMGI's is expected to become profitable in the next 3 years.

Revenue vs Market: WMGI's revenue (12.1% per year) is forecast to grow faster than the US market (8.7% per year).

High Growth Revenue: WMGI's revenue (12.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WMGI's Return on Equity is forecast to be low in 3 years time (5.3%).


Next Steps

Past Performance

How has Wright Medical Group performed over the past 5 years?

21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WMGI is currently unprofitable.

Growing Profit Margin: WMGI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WMGI is unprofitable, but has reduced losses over the past 5 years at a rate of 21.9% per year.

Accelerating Growth: Unable to compare WMGI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WMGI is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (2.9%).


Return on Equity

High ROE: WMGI has a negative Return on Equity (-8.35%), as it is currently unprofitable.


Next Steps

Financial Health

How is Wright Medical Group's financial position?


Financial Position Analysis

Short Term Liabilities: WMGI's short term assets ($648.5M) do not cover its short term liabilities ($767.1M).

Long Term Liabilities: WMGI's short term assets ($648.5M) do not cover its long term liabilities ($834.1M).


Debt to Equity History and Analysis

Debt Level: WMGI's debt to equity ratio (123.3%) is considered high.

Reducing Debt: WMGI's debt to equity ratio has reduced from 218.9% to 123.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: WMGI has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if WMGI has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Wright Medical Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WMGI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WMGI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WMGI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WMGI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WMGI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.3yrs

Average management tenure


CEO

Bob Palmisano (74yo)

8.75yrs

Tenure

US$7,309,175

Compensation

Mr. Robert J. Palmisano, also known as Bob, served as Chairman of the Board of Directors at Avedro Inc. since May 14, 2014 until November 21, 2019. He has been the Chief Executive Officer, President and Ex ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD7.31M) is about average for companies of similar size in the US market ($USD5.78M).

Compensation vs Earnings: Bob's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Palmisano
President & CEO8.75yrsUS$7.31m0.55% $21.1m
Lance Berry
Executive VP & Chief Financial and Operations Officer10.5yrsUS$2.39m0.074% $2.8m
James Lightman
Senior VP8.5yrsUS$1.57m0.030% $1.2m
Kevin Cordell
Executive VP & Chief Global Commercial Officer1.42yrsUS$2.11m0.032% $1.2m
Barry Regan
Senior Vice President of Operations1.92yrsUS$1.33m0.00070% $26.9k
Jonathan Porter
Senior VP & Chief Compliance Officer5.67yrsno data0.014% $536.4k
Julie Dewey
Senior VP & Chief Communications Officer8.67yrsno data0.011% $423.5k
Andrew Morton
Senior VP & Chief Human Resources Officer2.25yrsUS$1.89m0.0053% $205.4k
Jennifer Walker
Senior Vice President of Process Improvement8.5yrsno data0.017% $671.2k
Julie Andrews
Senior Vice President of Global Finance8.08yrsno data0.019% $733.4k

8.3yrs

Average Tenure

52yo

Average Age

Experienced Management: WMGI's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Spencer Stiles
Executive Director0.17yrno datano data
Dean Bergy
Non-Executive Director0.17yrno datano data
David Stevens
Independent Chairman of the Board11.42yrsUS$365.22k0.074% $2.9m
Gary Blackford
Independent Non-Executive Director12.42yrsUS$296.47k0.056% $2.1m
Jeanne Blondia
Non-Executive Director0.17yrno datano data
David Furgason
Non-Executive Director0.17yrno datano data
William Berry
Non-Executive Director0.17yrno datano data

0.2yrs

Average Tenure

60.5yo

Average Age

Experienced Board: WMGI's board of directors are not considered experienced ( 0.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

Wright Medical Group N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wright Medical Group N.V.
  • Ticker: WMGI
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$3.840b
  • Shares outstanding: 128.89m
  • Website: https://www.wright.com

Number of Employees


Location

  • Wright Medical Group N.V.
  • Prins Bernhardplein 200
  • Amsterdam
  • Noord-Holland
  • 1097 JB
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WMGINasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDFeb 2011
T98DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2011
WMGI NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNFeb 2011

Biography

Wright Medical Group N.V., a medical device company, designs, manufactures, markets, and sells upper and lower extremities, and biologics products in the United States, Europe, the Middle East, Africa, Canada, Asia, Australia, and Latin America. The company offers joint implants and bone fixation devices for the shoulder, elbow, wrist, hand, foot, and ankle; and biologics products that are used for supporting the treatment of damaged or diseased bones, tendons, and soft tissues, as well as to stimulate bone growth. It also provides sports medicines and other products to mechanically repair tissue-to-tissue or tissue-to-bone injuries, as well as other ancillary products. The company offers its products to orthopedic, trauma, and podiatric surgeons. It markets and sells its products through direct sales representatives, independent sales agencies, direct sales offices, and distributors. The company was founded in 1999 and is headquartered in Amsterdam, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 05:09
End of Day Share Price2020/06/05 00:00
Earnings2020/03/29
Annual Earnings2019/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.